Negative Chinese PMI reports, indications the Federal Reserve is moving farther away from QE3, increasing Spanish bond yields and a replay of Greek political anxiety about austerity are all putting pressure on global stock markets and oil prices as another risk asset.

West Texas Intermediate crude prices have dropped almost $8 from late February, from almost $110 a barrel to a little less than $102 on Tuesday.

But the hopes for a continued drop in oil and gas prices are overrated.

A Reuters report has Iranian President Ahmedinijad claiming his country can easily withstand a total boycott of Iranian oil exports for more than two years if necessary -- not the statement of a leader about to deliver a major concession at upcoming talks.

On the other side, Israeli defense minister Ehud Barak appeared on CNN Sunday expressing doubts that sanctions will ever be able to force the Iranians to give up their nuclear aspirations.

The implication of that statement is fairly obvious: If economic sanctions won't get it done, it becomes fairly clear what Israel believes is the ultimate solution: strategic destruction of Iranian nuclear facilities.